Insurer could move tax domicile if corporation tax exceeds 12.5%
Lloyd’s insurer Beazley would consider shifting its tax domicile from Ireland if the country’s 12.5% corporate tax rate were raised. Group finance director Martin Bride said: “Supposing the tax rate is increased, that would clearly lead us to look at whether or not we needed to make any changes to our group structure,” he said. But he added: “So far the Irish government has gone to great lengths to underline that they intend to keep the rate at 12.5%.”
Of the other insurers with Irish tax domiciles, XL Group declined to comment and Zurich was unavailable.
Following Ireland’s bail-out by the EU and International Monetary Fund, the Irish government has insisted a higher corporation tax is not a condition of the deal. But there are concerns that Ireland may face pressure to increase the rate, particularly from France and Germany.
Bride said Beazley was prepared for change, given that it made the move to Ireland recently and had considered several options beforehand. “We feel well positioned, were there to be a change in Irish tax corporation rates, to relatively quickly evaluate the consequences,” he said.